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	<title>Comments on: Global Gridlock</title>
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	<link>http://www.creativeclass.com/_v3/creative_class/2009/07/09/global-gridlock/</link>
	<description>The source on how we live, work and play</description>
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		<title>By: doradca prawny</title>
		<link>http://www.creativeclass.com/_v3/creative_class/2009/07/09/global-gridlock/comment-page-1/#comment-47605</link>
		<dc:creator>doradca prawny</dc:creator>
		<pubDate>Mon, 05 Dec 2011 20:14:08 +0000</pubDate>
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		<description>good morning, exalted blog on fatlike loss. said helped. Z gwarancją nierzadko rozważałeś o tym dlaczego spece z dziedziny prawa spadkowego nie dają informacji dotyczących tej zagwostki w Sieci. Od teraz nie powinieneś się nad tym męczyć. Możemy właśnie zareklamować nowy serwis z wiadomościami, który projektowany jest przez eksperta od prawa spadkowego. Przez przeglądanie zawartych tu treści i możliwe dywagacje ze prawnikiem poznasz się tu wielu interesujących treści związanych z testamentem.</description>
		<content:encoded><![CDATA[<p>good morning, exalted blog on fatlike loss. said helped. Z gwarancją nierzadko rozważałeś o tym dlaczego spece z dziedziny prawa spadkowego nie dają informacji dotyczących tej zagwostki w Sieci. Od teraz nie powinieneś się nad tym męczyć. Możemy właśnie zareklamować nowy serwis z wiadomościami, który projektowany jest przez eksperta od prawa spadkowego. Przez przeglądanie zawartych tu treści i możliwe dywagacje ze prawnikiem poznasz się tu wielu interesujących treści związanych z testamentem.</p>
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		<title>By: Wendy</title>
		<link>http://www.creativeclass.com/_v3/creative_class/2009/07/09/global-gridlock/comment-page-1/#comment-13324</link>
		<dc:creator>Wendy</dc:creator>
		<pubDate>Thu, 09 Jul 2009 21:04:48 +0000</pubDate>
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		<description>Without expanded infrastructure in the US, it won&#039;t help to manufacture more goods there.  In fact, that would likely just increase the problem.  Right now, getting all the component parts for the manufacturing of goods to the factory is China&#039;s problem.  America only needs to receive the finished product by ship, rail and truck.</description>
		<content:encoded><![CDATA[<p>Without expanded infrastructure in the US, it won&#8217;t help to manufacture more goods there.  In fact, that would likely just increase the problem.  Right now, getting all the component parts for the manufacturing of goods to the factory is China&#8217;s problem.  America only needs to receive the finished product by ship, rail and truck.</p>
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		<title>By: Andrew Meyer</title>
		<link>http://www.creativeclass.com/_v3/creative_class/2009/07/09/global-gridlock/comment-page-1/#comment-13320</link>
		<dc:creator>Andrew Meyer</dc:creator>
		<pubDate>Thu, 09 Jul 2009 18:54:29 +0000</pubDate>
		<guid isPermaLink="false">http://www.creativeclass.com/_v3/creative_class/?p=12250#comment-13320</guid>
		<description>Long term that makes a lot of sense, but isn&#039;t there also significant marginal cost pressure short term that makes globalization challenging in this environment?

A lot of the cost of globalization is variable.  You can take ships off line, take planes out of service etc.  But a lot of the costs are still fixed.  Companies, employees, etc.

If there are 100 units shipping globally, the fixed costs are spread across all 100 units.  However, if trade decreases and only 73 units are shipped, the amount of fixed costs which must be borne by each unit increases.  So the less trade there is, the more expensive each trade becomes.

As unemployment increases in the US the cost of hiring in the US goes down.  At some point, it becomes more economically beneficial to manufacture in the US than it is to manufacture internationally.

Whether you call it protectionism, patriotism (hiring my fellow Americans) or risk mitigation (can you say lead paint), at some point it becomes a purely economic decision where to manufacture.</description>
		<content:encoded><![CDATA[<p>Long term that makes a lot of sense, but isn&#8217;t there also significant marginal cost pressure short term that makes globalization challenging in this environment?</p>
<p>A lot of the cost of globalization is variable.  You can take ships off line, take planes out of service etc.  But a lot of the costs are still fixed.  Companies, employees, etc.</p>
<p>If there are 100 units shipping globally, the fixed costs are spread across all 100 units.  However, if trade decreases and only 73 units are shipped, the amount of fixed costs which must be borne by each unit increases.  So the less trade there is, the more expensive each trade becomes.</p>
<p>As unemployment increases in the US the cost of hiring in the US goes down.  At some point, it becomes more economically beneficial to manufacture in the US than it is to manufacture internationally.</p>
<p>Whether you call it protectionism, patriotism (hiring my fellow Americans) or risk mitigation (can you say lead paint), at some point it becomes a purely economic decision where to manufacture.</p>
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